Zakat is due on wealth you have held for one lunar year (hawl) above the nisab threshold. Here is a straightforward overview.
1. Identify your zakatable assets
Cash, savings, gold and silver, business inventory, receivables you expect to collect, and certain investments.
2. Subtract eligible liabilities
Immediate debts and due expenses can be deducted according to scholarly guidance.
3. Check the nisab
If your net zakatable wealth is above the nisab (the value of 85g of gold or 595g of silver), zakat is due.
4. Apply the rate
Zakat on monetary wealth is 2.5%. For precise, situation-specific calculation, book a consultation.
